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Why You Should Sell Your House Now

In regard to the housing market, it’s no secret that 2021 has been a year for the sellers.

For homeowners considering selling, the combination of historically low interest rates, low inventory, and high buyer demand creates the perfect scenario to sell their home. Let’s take a look at what is driving this seller’s market and why if you’re thinking of selling …. NOW IS THE TIME!

The National Association of Realtors (NAR) explains:
“Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.”
However, even though the number of houses for sale this spring rose a bit, inventory stayed at an all-time low (See graph below):

Buyer demand remains high even with the low inventory creating a gap between supply and demand.

This scenario gives sellers a perfect opportunity to enter the market enabling their homes to get plenty of attention and in most cases multiple offers in a very short period of time.
This supply and demand imbalance is putting homebuyers in bidding wars at an accelerating rate. The average number of bids received on the most recently closed sales is 4.8 offers. This number has doubled since the first quarter of 2020, according to NAR reports. (See graph below):

As buyers face increasingly tough competition while searching for homes to purchase, they’re more likely to be flexible and generous in their negotiations. Here in the Miami market, we’ve had sellers receiving well over 20 offers within 24 to 48 hours of their homes hitting the market. We have also seen an increase in offers submitted from buyers prior to even seeing the properties themselves. Properties are going under contract within less than a week of being on the market, well above asking price with shorter than average inspection periods, no appraisal contingencies, and faster closings. This is giving sellers the opportunity to be more selective and choose the buyers that fit their needs.

The low months of inventory and high number of offers received on properties for sale inevitably gives us a very fast paced market.

According to NAR “Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month.” (See graph below):

 

NAR Chief Economist Lawrence Yun explains:
“The sales for March would have been measurably higher, had there been more inventory…Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

There is no doubt we are in a sellers’ market and working with a trusted real estate professional, who will assist and guide through the buying/selling process, is essential for buyers and sellers navigating the real estate market these days. Give us a call, we are always happy to assist you with all your real estate needs.

Source: https://www.keepingcurrentmatters.com/

Benefits of Recuded Debt

Benefits of Reduced Debt

If you’ve set a goal to pay down your debt this year, you’re not alone. Strategically reducing or paying off debt benefits your finances tremendously, but can positively impact other areas of your life as well.

Reduce stress.

According to a recent study, more than 85% of Americans intermittently feel stressed by their finances and 30% feel stressed constanly.*  By making a commitment to pay off your debt, you’re also making a commitment to your overall health and well-being by minimizing a large cause of your stress.

Improve your credit score.

Although credit cards and lines of credit may help establish your score, maintaining low balances positively impacts it overall. Additionally, if you plan to finance large purchases, such as a car or home, keeping your outstanding balances low may classify you as a lower credit risk and qualify you for reduced rates.

Easily pay an unexpected bill.

If your debts are low, you’ll be able to save more in an emergency fund to handle financial surprises, such as an unexpected home repair bill.

Increase your disposable income.

Many Americans live paycheck-to-paycheck; their hard-earned money is already earmarked to pay off debts and bills before it’s even deposited in a bank account. However, the less debt you are in, the more disposable income you will have available to enjoy now or save for later.

Boost your retirement income.

If you want to maintain your lifestyle long after retirement, the time to save is now. Unfortunately, one of the biggest impediments to building a retirement nest egg is existing debt. The good news is, when you pay down or pay off your debt, you can choose to contribute additional funds to existing retirement accounts for enjoyment of your golden years.

Model good financial habits for others.

If you want others to cultivate good financial habits, be the example they can follow. People, especially children, mimic the behaviors they see. Explain how to cultivate good financial habits and why it is important to do so. Additionally, provide reasons why it is best to avoid unnecessary debt.

Become more generous. 

The less debt we have, the more generous we may feel with our money. Whether it’s tithing more, donating to a local school or sports programs or giving money to a cause dear to us, we may feel like we can give more.

 

Harness the benefits of compound interest

Whether you’re paying down debt or are debt-free, transfer a percentage of your earnings each paycheck to an interest-bearing account. The intent is to make a portion of your earnings work for you.

“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t…pays it.”                                                                                                              -Albert Einstein

 

 

3 Ways to earn extra money

Looking for ways to earn more money? Whether you want to pay down debt, build emergency savings or invest, consider these options.

  1. Get side hustle. Do you have a hobby or skill that could net more money on the side? Whether it’s photography, web design or crafting, consider sharing your skills to earn extra cash.
  2. If you have extra room in your home or an in-law apartment, consider renting it through Airbnb. Be sure to check the regulations in your area to ensure you’re in compliance with municipal codes or homeowner’s association rules.
  3. Clear the clutter. Sort through your stuff and set aside items that you don’t use, are in good condition and others would enjoy. Consider selling them online, at a consignment shop or in a garage sale.

 

Sources: *CNBC, March 20, 2018; Buffini & Company